*Paywall Alert
by Brenda Richardson | June 2020
A decades-old housing policy known as redlining has had a long-lasting effect on American society and the economic health of Black households in particular, according to a new report by Redfin real estate brokerage. The racist 1930s-era policy that was outlawed in the 1960s effectively blocked Black families from obtaining home loans and remains a major factor in the country’s already substantial wealth gap between Black and white families. The typical homeowner in a neighborhood that was redlined for mortgage lending by the federal government has gained 52% less—or $212,023 less—in personal wealth generated by property value increases than one in a greenlined neighborhood over the last 40 years. Black homeowners are nearly five times more likely to own in a formerly redlined neighborhood than in a greenlined neighborhood, resulting in diminished home equity and overall economic inequality for Black families.
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